How can 1 rent? - Warning, vent thread

[okiron]

Thanks for the encouragement guys and the great ideas. I'll look into all of them. I knew about the tax credit but I didn't know you could use it as a down payment. That's great news! Heh I was actually looking around Norco and surrounding areas. I'd love to live over there.

 

[ohiofarmgirl]

dont rule out asking the landlord to accept a monthly payment for first/last/deposit... for instance, see if you can spread the downpayments across several months in addition to the rent

when going to check out rentals:

1. be on time
2. shovel out your car
3. have your best manners
4. dress conservatively in a way that says "i'm quiet, well behaved, and will not cause a problem whatsover"
5. offer to work in lieu of rent etc - are you a tradesperson? can you help with the property?
6. dont say 'geez i cant wait to get here and set up my band instruments/model rockets / shooting range'

landlords are willing to work with good renters - sell yourself to the landlord and see if they will be flexible

good luck!

 

[The Chicken Lady]

I'm not sure if the $8,000 tax credit applies to rental properties.

 

[okiron]

Quote:
Yeah, I know. But if I can get $8k help on top of our savings for a down payment, our dreams of home ownership could come sooner rather than later.

 

[The Chicken Lady]

Quote:
Yeah, I know. But if I can get $8k help on top of our savings for a down payment, our dreams of home ownership could come sooner rather than later.

Just to give you an idea...you can do it right now depending on where you live and your credit score.

We bought a 13-year-old house this spring (3 BR, 3 baths, three finished floors on 1.5 acres, zoned AGR-Residential). The sale price was $141,000 (it was assessed at $210,000 and was in foreclosure). We had only been saving for a year because our original plan had been to buy something in 2010, so we had a $5,000 down payment, and with closing costs (etc.) we ended up needing to have around $9,000, which we managed to scratch up from here and there. We got an FHA loan for our home.

Our monthly payment (which includes taxes) is just a little over $1,000 a month. Consider that we were paying $915 a month for a two-bedroom, 1.5 bath townhouse with no yard and a super-tiny kitchen for the two years prior.

You can find a really good (really NICE!!) house if you just keep looking.

Go for that tax credit. That's what helped us to make the decision to buy a home this year.

Of course, you're in California, which (from what I hear) is a whole different ballgame in terms of price.

 

[okiron]

Congratulations and thanks, it's slowly starting to become a real possibility. Just for those who read this later, the $8k credit could only be used as a downpayment for HUD and FHA loans.

http://www.federalhousingtaxcredit.com/

Q: The Secretary of Housing and Urban Development has announced that HUD will allow "monetization" of the tax credit. What does that mean?
It means that HUD will allow buyers to apply their anticipated tax credit toward their home purchase immediately rather than waiting until they file their 2009 income taxes to receive a refund. These funds may be used for certain downpayment and closing cost expenses.

A: Under the guidelines announced by HUD, non-profits and FHA-approved lenders will be allowed to give home buyers short-term loans of up to $8,000.

The guidelines also allow longer term loans secured by second liens to be used by government agencies, such as state housing finance agencies, to facilitate home sales.

Housing finance agencies and other government entities may issue tax credit loans, the funds of which home buyers may use to satisfy the FHA 3.5% downpayment requirement.

In addition, approved FHA lenders will also be able to purchase a home buyer’s anticipated tax credit to pay closing costs and downpayment costs above the 3.5% downpayment that is required for FHA-insured homes.

More information about the guidelines is available on the NAHB web site. Read the HUD mortgagee letter (pdf) and an explanation of the FHA Mortgagee Letter on Tax Credit Monetization (pdf). An FAQ about monetization (pdf) is available at the NAHB web site.

 

[quiltnchik]

We actually found our new house from a wanted ad I placed on Craig's List. We did have to come up with first and last month's rent, plus a pet deposit, plus a half-month's rent since we wanted to start moving right away. The only way we were able to manage that was by pulling money out of DH's 401K, but we had no choice; it was either that or be homeless. Total paid to landlord: $3300.00!

AFTER we found a place and paid out all this money, the bank called us back and wanted to go ahead with a loan modification on our current mortgage; this AFTER they "sold" (a private investor for the bank "bought" it back) our house on May 18th! We need a lawyer, but can't afford one...so anyway...

Our new landlord doesn't mind the pets (5 dogs, 9 cats, 8 chickens, etc.) because we assured him that we would fix up the yard and take care of the house (the landlord built the house himself 2 years ago and the people that lived there before just didn't care). DH and I love to landscape, and we treat rental houses as if they were our own (we have to live there, so why not?!?), so it's a win-win for all of us.

Average rent in our area is at LEAST $1000.00/month because we're in a "bedroom area" for DC, Richmond and Charlottesville. I honestly don't know how people expect others to pay that, but I think it's because people's mortgage payments are so high, they have to charge at least the amount they're paying. As for rental apartments, townhouses, etc., I don't know what their excuse is for charging so much, other than, again, the area we live in...

 

[Sillystunt]

i lived in cali, i feel ur pain! We left and moved to fl, bought our home for 95grand and had the market plumit! Neighbor got her house for 67grand...URGH
But all said and done, it was the smartest thing we did!
My friends in San Diego just bought a 400,000 house for 210,000. mortage is aroind 1200. For cali that aint so bad!
Buy now while the inventory is out ther, better homes and better prices

 

[onthespot]

what sort of home are you looking for, bedrooms wise and animals wise? i can keep an eye out for you. There are parts of norco where livestock animals are not allowed, so be VERY CAREFUL and check with the City, don't take anyone's word for it.

 

[okiron]

Quote:
Thanks, there's 3 of us so we'd like a 2 bedroom and animal wise we have a dog, 2 cats and a rabbit as of right now. We don't want to pay more than $1400/month.